REALTY : Processing a home loan – key to your home

When you submit your home loan application, the home loan financer will typically charge a processing fee of 0.5 to 1% of the loan amount. This is non-refundable. Considering that even this is a huge amount, one would advise having all papers in place bef

Buying a house is not just an investment, for most it’s a mark of stability and security. You feel good knowing that you are in your “own” home. Having said that, the process sounds easier than it actually is. Theoretically speaking, you look for the right place, zero in on a flat, apply for a loan, it gets disbursed and the house is yours. But that’s not how it actually happens. Getting a home loan processed is often a lesson in patience and endless paper work.

Increasing competition and opening up of the Indian markets has definitely made getting a home loan easier than before, but a certain minimum documentation is required. Typically after you apply for a home loan, you would need to submit the following to the lender:-

identity proof
age proof
residence proof
income details
pan card number
debt details

The bank would go through these before letting you know the amount you can borrow. If you’ve already finalized on a property, it’s a good idea to submit the property details also for verification and approval. Most builders let you know which banks offer pre-approved loans on their construction. This step also ensures that the property is free of any legal hassles.

All mortgage loans require a 20% down payment? No Some Conventional loan products require a 20% down payment, but there are many home loans available with lower down payment requirements.

So that’s it? Submit these documents and you’re done. Not quite. If you have too many loans like car loan, education loans, etc. showing up against your salary, the amount sanctioned to you can come down greatly.And even when everything else is clear, the slightest hitch on your credit card statement can also see your loan being refused. This is especially true if you apply to a nationalized bank for a home loan. Newer private financers are usually not so rigid and overlook smaller disputes.

Even then, it’s a good idea to get your credit card dues all sorted out before applying for a home loan. A negative credit score usually puts off borrowers. If there are any disputes on a credit card or another loan, settle them and make sure the other party alters your credit score before you put in a fresh application.

When you submit your home loan application, the home loan financer will typically charge a processing fee of 0.5 to 1% of the loan amount. This is non-refundable. Considering that even this is a huge amount, one would advise having all papers in place before applying for a loan. And then when it gets processed, and the loan is disbursed, you will have the keys to your own home.

At SHRI, we constantly strive to make things simple and easy to enable our customers to buy their home. We ensure that our customers face no inconvenience in their quest of their dream home.

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